focuses on shareholder value with special dividend
FILA Holdings announced its third-quarter results and a special dividend through public disclosure on Nov. 14.
The company’s consolidated revenue reached 990.19 billion won and its operating profit stood at 92.56 billion won, supported by subsidiary Acushnet’s robust sales. The FILA brand’s group-wide revenue decreased as a result of direct business changes and increased investment under its global five-year “WINNING TOGETHER” strategy launched in 2022.
Acushnet’s quarterly revenue rose to 778.95 billion won, representing 3.3% year-on-year growth due to high demand for Titleist golf balls as well as brisk sales of its newly launched Titleist golf clubs and a higher average selling price (ASP). Acushnet’s profitability was also driven by lower SG&A expenses such as logistics costs, and it is expected to enjoy steady growth based on the momentum of the Titleist and Footjoy brands within a strong U.S. golf market.
Meanwhile, FILA recorded quarterly revenue of 211.25 billion won, a 35.1% year-on-year decrease. The brand is aiming to achieve a turnaround in its direct business regions in line with its sustainable growth strategy. In particular, FILA Korea is enhancing brand value by adjusting sales channels, including inefficient stores. Elsewhere, FILA USA is resolving overstocking, a wider U.S. market issue, as it cleared a large portion of inventory as of the end of September compared with the close of last year.
FILA Holdings is issuing a special dividend for the second consecutive year despite the challenges it is facing amid the FILA brand's strategic shift. The company's long-term commitment to strengthening shareholder value is a key aspect of its "WINNING TOGETHER" strategy.
On Nov. 14, the board approved a special dividend payment of 340 won per share, totaling 20.43 billion won, to shareholders of record as of Sept. 30, 2023. Under Capital Markets and Financial Investment Business Act Article 165-12, dividend payments will be made within 20 days of the date of the board’s resolution. Going forward, the company will continue to discuss various effective ways to further enhance shareholder value.
Moreover, FILA’s commitment to taking a leap forward was recently demonstrated by its selection of renowned model and entrepreneur Hailey Bieber alongside star actress Han So-hee as the brand’s official global ambassadors. Both icons are expected to engage in numerous activities as brand representatives. In addition, FILA is strengthening its position as a representative tennis brand by participating as an official sponsor in UTS Seoul, a new concept tennis tournament that will be held in Asia for the first time at the end of this month.
"In the face of a challenging business environment, we are striving to improve shareholder value along with profitability in our main business," said FILA Holdings CFO Ho Yeon (Aaron) Lee. He added, "We recorded solid consolidated quarterly earnings based on the growth of Acushnet, while we remain committed to our long-term goals with the FILA brand."